Rising insurance costs and static rental returns are dominant issues for DNZ Property Fund in the year ahead.
The listed property investor has returned to profit, after taking a $32 million hit to buy back its management contract last year.
It made $8.2 million in the six months to September, compared with a loss of $43.4 million in the same period a year earlier.
Rental rates have been flat and occupancy rates have risen by less than 0.5%, with office properties the weakest segment in its portfolio.
The company has just bought three Foodstuffs supermarkets for $41 million and is in the early planning stages for the Johnsonville Shopping Centre.
But chairman Tim Storey says the company plans to keep a diverse portfolio.
He says DNZ Property Fund has roughly a third each in retail, industrial and in office and that's the strategy going forward.
Mr Storey says with an active management programme the company looks at that mix which should reflect the economic conditions from time to time.
He says rising insurance costs will affect future property buying decisions.
Mr Storey says the company is open to new opportunities after the Argosy Property Trust takeover collapsed.